Suzlon Energy plans to list its German subsidiary Senvion SE, according to the company’s group head, finance, Kirti Vagadia. Speaking to FE, Vagadia said that the unit is the wind turbine maker’s strongest asset and has maintained profitability despite strong headwinds in the sector.

“Senvion is our strongest asset and it has been profit-making and growing in revenue terms. This is specially notable in the last three years which were bad for the wind energy sector with every company bleeding during the period,” he said, adding that the time was ripe for such a step as the valuation in the sector has improved significantly.

“One year ago, EV/ebitda was a multiple of four, that has gone up to almost 9-10 now and valuations of various companies have grown five to six fold. In such circumstances, it is an opportunity for us to look at listing. It is on the table, it is under consideration — but I will not say that it is the only option and I would not put any time-table on that unless it is decided by my board,” Vagadia said.

Bankers said that Suzlon plans to list the subsidiary on the London Stock Exchange and expects a valuation of about R25,000 crore and is looking at raising about R6,000-7,000 crore. The funds would be used to hive off part of the debt and for expansion of business.

In April, Senvion, formerly known as RePower Systems, obtained 850 million euros in funding from 14 lenders led by Bayerische Landesbank, Commerzbank and Deutsche Bank. The Pune-based company’s shares touched a year-high on the announcement.

The company has been battling a poor market for wind energy for the past few years which saw its fortunes failing. It entered corporate debt restructuring (CDR) in January 2013 with a package of R9,500 crore, approved by Indian banks. It defaulted on repayment of FCCBs in October 2012 which resulted in cross-default on other FCCBs issued by the company.

On May 3, Suzlon announced the restructuring of the four series of these FCCBs. Vagadia said there were inherent complexities to this discussion as the bond-holders were across nationalities and as the company is under CDR, it faces restrictions in currency-related matters from the RBI.

“You must appreciate that in the 18 months during which the FCCB remained under default, we did not have a single petition for winding up or liquidation,” Vagadia said.